The Best Time To Start Exit Planning
Life gets busy when you are running a business, and planning for your future can sometimes be neglected. That’s why it’s a good idea to get someone like us to focus on your longer-term plan so you can focus on your day-to-day business.
We recommend giving yourself at least 5 years to maximize the potential value extracted when you exit. But when it comes to exit planning, the good news is that it’s never too early or late to start. Starting early means you create a business that is exit ready on an ongoing basis, which is desirable regardless of whether you are ready to exit or not.
For other business owners concerned that it’s too late to exit, think of it like trying to sell your house quickly. There are simple things you can do to increase the value of your house which don’t require you to spend a lot of time or money, for example, cleaning out clutter, cleaning up the yard, or a quick coat of paint. Likewise there are some things you can do to improve the value of your business in the short term. They won’t have the same impact as a strategic succession plan, but they will improve the buyer’s perception of your business.